Information Technology and the World Economy

Scandinavian Journal of Economics, Vol. 107, No. 4, pp. 631-650, 2005

Lee Kuan Yew School of Public Policy Research Paper No. PP05-01

Posted: 17 Oct 2011 Last revised: 15 Sep 2014

See all articles by Dale W. Jorgenson

Dale W. Jorgenson

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Vu Ming M. Khuong

National University of Singapore (NUS) - Lee Kuan Yew School of Public Policy

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2005

Abstract

This paper addresses the impact of investment in information technology (IT) on the recent resurgence of world economic growth. We describe the growth of the world economy, seven regions and 14 major economies during the period 1989–2003. We allocate the growth of world output between input growth and productivity and find, surprisingly, that input growth greatly predominates. The contributions of IT investment have increased in all regions, but especially in industrialized economies and Developing Asia. Differences in per capita output are explained by differences in per capita input, rather than by variations in productivity.

Keywords: growth, investment, productivity, information technology

JEL Classification: 047

Suggested Citation

Jorgenson, Dale W. and Khuong, Vu Ming M., Information Technology and the World Economy (December 1, 2005). Scandinavian Journal of Economics, Vol. 107, No. 4, pp. 631-650, 2005; Lee Kuan Yew School of Public Policy Research Paper No. PP05-01. Available at SSRN: https://ssrn.com/abstract=1945084

Dale W. Jorgenson (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Room 122
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National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
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Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States

Vu Ming M. Khuong

National University of Singapore (NUS) - Lee Kuan Yew School of Public Policy ( email )

Singapore 117591
Singapore

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